MRM // 2021 Universal Registration Document

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Risk factors

Main risk factors

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2.2.5 Environmental risks

HEALTH CRISIS LINKED TO THE COVID-19 PANDEMIC

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Description of the risk and its impacts

Risk mitigation measures

A resilient brand mix M.R.M.’s portfolio includes a significant proportion of retail space dedicated to food products (supermarkets, food shops), and other products and services that were authorised to remain open during the crisis. In addition, M.R.M. benefits from a relatively favourable brand mix, with a significant share of its revenue generated by resilient stores dedicated to food, household goods and discount as well as services (see details by sector in Section 1.4.1 of this Universal Registration Document). Initiatives to strengthen liquidity M.R.M. has enough cash to cushion the blow of a substantial decline in rents and charges for several months. The massive economic stimulus packages announced by the French government and the European Central Bank limited the impact of the crisis. In May 2020, given the uncertainties related to the duration of the health crisis and its impact on the business, the Board of directors of M.R.M. prudently decided not to propose a dividend to the shareholders for the 2019 financial year. In May 2021, given the recovery in retail activity expected from 19 May 2021, the distribution to shareholders in respect of 2020 was limited to €0.05 per share, equivalent to 45% of the amount paid in respect of 2018 in 2019, the last fnancial year before the health crisis. At the same time, M.R.M. worked to strengthen its liquidity position and secure its fnancial resources: • by signing agreements twice, in June 2020 and in May 2021, with its main banking partner at the time, allowing it to postpone the contractual repayments planned for 2020 and 2021 for a total of €3.1 million; • and refinancing all of its bank debt in December 2021, postponing its next repayment deadline to December 2028. Continuity plans M.R.M. and its main service providers have activated business continuity plans and are working well remotely. Digital solutions and health protocols have been deployed at the Company’s head office, and work procedures have been adapted to enable employees to continue their work.

11 Since 2020, M.R.M. had to deal with the difficulties that affected all retail players faced with the pandemic: • restrictions on retail activity; • diffculties in recovering rent invoiced; • signifcant uncertainty that could impact the valuation of the portfolio; and • implementation of teleworking. Restriction of retail activity In response to the pandemic, in 2020 and 2021 France experienced three periods of lockdown for its population and strong restrictions on commercial activity throughout France, with the administrative closure of so-called “non-essential” stores, and strict limits on consumer travel to retail locations. On average, for the full year 2020, tenants remaining open accounted for 83% of M.R.M.’s annualised gross rents (see details by period in Section 1.4.1 of the 2020 Universal Registration Document), 73% in the frst half of 2021 and 100% in the second half of 2021. To date, while all stores have been able to gradually reopen their doors to the public since 19 May 2021, the context is still marked by the possible risk of new developments in the health crisis. Difficulty in collecting rents Depending on the period, the commercial activity of M.R.M.’s tenants was either stopped or severely disrupted, affecting their ability to pay their rent and charges. For M.R.M., this situation weighed on the generation of rental income, the reimbursement of charges and taxes borne by tenants, and on the Group’s cash flow. Faced with the economic impact of health measures for retailers, M.R.M. has implemented support measures for its tenants who were administratively forced to close their stores or whose activity has been severely affected during periods of lockdown. Rent waivers and negotiated compensation were discussed with tenants on a case-by-case basis. This resulted in rent waivers in 2020, of which €1.0 million granted for the first period of lockdown (from mid March to mid-May 2020), €0.2 million provisioned for the second (in November 2020), and €0.5 million provisioned for the third (from March to May 2021). In total, after taking into account the support measures that M.R.M. has granted or provisioned, the recovery rate of rents due for 2020 and 2021 reached 93% and 92% respectively. Significant uncertainty that could impact the valuation of the portfolio In 2020, in a context of signifcant uncertainty, the appraisers used assumptions of higher capitalisation rates as well as longer marketing periods for vacant space and the duration of the rent-free periods to be granted to tenants. The value of the portfolio as of 31 December 2020 was thus down by 4.1% on a like-for-like basis compared to the end of December 2019, with contrasting trends depending on the assets. In 2021, despite the context, the letting successes, the increase in the occupancy rate and the increase in annualised net rents enabled the value of the portfolio to increase by 3.5% on a similar basis as of 31 December 2021 as compared to end December 2020. Implementation of teleworking From the beginning of the health crisis, M.R.M. had to organise itself to implement the teleworking measures recommended by the French government, thus giving priority to the safety and health of its employees.

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M.R.M. 2021 UNIVERSAL REGISTRATION DOCUMENT